Yours is bigger BS.
In order to revoke your XBL "priviledge", they have to follow certain rules they have outlined for the service and regardless of those rules, if they don't have good reason there is a recourse. If a situation existed where they were unbanning consoles for no apparent reason and they didn't unban mine (if it was banned), then there are grounds for you to get them to change your status back. There are plenty of examples of companies that have treated customers unfairly (ipod batteries as an example) where at some point there is a critical mass of people who won't accept what a company is doing and then effect change.
The point is moot in this circumstance because I don't believe the person was unbanned anyhow. It was likely just some other issue that was corrected.
If youre going to talk about the TOS, maybe you should read it
18. CHANGES TO THE SERVICE; OUR CANCELLATION OF THE SERVICE
We may change the Service or delete or discontinue features, games or other content at any time and for any reason. We may cancel or suspend your Service at any time. Our cancellation or suspension may be without cause and/or without notice.
Upon Service cancellation, your right to use the Service stops right away. Once the Service is cancelled or suspended, any data you have stored on the Service may not be retrieved later. Our cancellation of the Service will not alter your obligation to pay all charges made to your Billing Account. If we cancel the Service in its entirety without cause, then we will refund to you, on a pro-rata basis the amount of your payment to Microsoft corresponding to the portion of your Service remaining right before such cancellation.